Canada Alerts Meat Businesses About China Scrutiny – Wall Street Journal

Canada Alerts Meat Businesses About China Scrutiny - Wall Street Journal
Chinese Ambassador urges Canada to forge its own path on Huawei and 5G
China's Ambassador to Canada Lu Shaye participates in an interview at the Embassy of the People's Republic of China in Canada, in Ottawa on Thursday, June 29, 2017.

China’s ambassador to Canada says his government wants to end the countries’ impasse but won’t give way on two of Canada’s major complaints.

In his interview with Power Play, Lu also accused the United States of intentionally manoeuvring to hurt Chinas high-tech sector. He said the U.S. suppressed Huawei and pushed Mengs arrest as a tool to launch a trade war against China "because Huawei is the most famous high technology enterprise of China" and the US are trying "to hinder, to obstruct Chinas high-tech development."

“Indeed, the bilateral relations between China and Canada are facing serious difficulties right now,” Lu Shaye said Tuesday at the Chinese Embassy in Ottawa, in an interview through an interpreter. “The Chinese side is not responsible for this issue. But the Chinese government is waiting to make a joint effort with the Canadian side and meet each other halfway.”

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When asked about the possibility of freeing two Canadians detained in China on espionage charges, however, Lu offered little wiggle room. And on China’s blocking Canadian canola imports, he considers the matter closed.

Canada’s relationship with Beijing has deteriorated rapidly since the December arrest of a Chinese telecom giant’s chief financial officer in Vancouver. The arrest of Huawei’s Meng Wanzhou was carried out after an extradition request by the United States.

China wants to meet halfway to fix dispute with Canada, but wont budge on jailed Canadians or canola ban

Meng’s arrest has outraged Beijing and Chinese authorities have demanded her release. Since Meng’s arrest, China has detained two Canadians on allegations of endangering the country’s national security, sentenced two Canadians to death for drug-related convictions and rejected important agricultural shipments.

Lu was asked for his thoughts on the possibility of working with a Canadian government led by Conservative Leader Andrew Scheer, who recently promised to take a harder line with China if he wins Octobers federal election. The envoy said he would not comment on Canadas domestic matters and said his country is willing to build relations with all political parties.

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Prime Minister Justin Trudeau has sought international support in condemning China’s decision to, in his word, “arbitrarily” arrest Michael Kovrig, a Canadian diplomat on leave, and businessman Michael Spavor.

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Last week on a visit to Ottawa, U.S. Vice-President Mike Pence linked the liberation of the two imprisoned Canadians to American trade talks with China.

Mengs arrest has outraged Beijing and Chinese authorities have demanded her release. Since Mengs arrest, China has detained two Canadians on allegations of endangering the countrys national security, sentenced two Canadians to death for drug-related convictions and rejected important agricultural shipments.

The offer is significant because the Chinese government has rebuffed requests from Foreign Affairs Minister Chrystia Freeland to speak with her counterpart.

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Pence said U.S. President Donald Trump would push Chinese President Xi Jinping on Kovrig and Spavor at the G20 leaders’ summit later this month. Trudeau is also expected to travel to Japan for that summit.

READ MORE: Canada has ‘very few options’ to secure release of Canadians being held in China: experts

"Its difficult to watch people die. Its difficult to watch people being crushed by tanks. And its difficult to be in a hospital, in the morgue section, and taking a look at the bodies that were once, moments before, chanting slogans about democracy and talking about freedom and that sort of thing," Munson said in an interview Tuesday.

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When it comes to Kovrig and Spavor, he said “the relevant departments of China will investigate the case, follow the Chinese laws, international practice and the consular agreement between China and Canada, and provide relevant treatment to them.”

The government has routinely branded the incarceration of Kovrig and Spavor as arbitrary. The pair continues to languish in Chinese custody, on allegations of espionage, in what is widely viewed as retribution for Canadas arrest last December of Huawei chief financial officer Meng Wangzhou on an extradition request by the U.S.

Lu spoke at length about China’s trade war with the U.S., which has rattled international markets and poses a threat to the global economy. He listed numerous examples of how he said the American side has backtracked during bilateral negotiations that began over a year ago.

The decline of Canada-China relations has also led to some direct economic consequences for Canadian businesses.

Chinas sow herd – being closely watched by the global livestock market as an epidemic of incurable African swine fever kills millions of animals in the worlds top pork producer – fell by 22.3% in April from a year earlier, the Ministry of Agriculture and Rural Affairs said last month.

China has been a huge market for Canadian canola seed, which is crushed to make cooking oil. The country imported $2.7 billion worth of Canadian canola seed last year, and any drawn-out blockage will hurt farmers, the industry and the national economy.

Canadian Agriculture Minister Marie-Claude Bibeau said in a statement that Ottawa was working with producers to underscore the importance of heightened quality assurance efforts to ensure there are no trade disruptions due to administrative errors.

China has stonewalled requests for Canadian experts to examine Chinese evidence that two canola-seed shipments contained pests.

Lu said Chinese officials investigated the Canadian canola “based on regulations and science principles.”

Canada, meanwhile, does not have a permanent ambassador to Beijing, following the firing of John McCallum in January. Relations between Canada and China have grown strained following the December arrest in Vancouver of Huawei executive Meng Wanzhou and Chinas subsequent arrest of two Canadians. Chinese authorities have also blocked imports of a series of Canadian agricultural products – including canola and pork – and stonewalled requests for high-level communications with the Canadian government.

“The Chinese side provided concrete documents about the investigation,” he said. “The relevant Chinese departments maintain no more contact with their Canadian counterparts. The documents have already been provided.”

In defending Huawei, he has also spoken out against what he called a stale cold-war mentality among those who believe that China – a socialist country led by the Communist Party of China – is an abnormal country. They are worried that China is catching up to Western countries too quickly, and that it will surpass them in terms of the economy as well as science and technology.

In an interview last week, International Trade Minister Jim Carr said Canada wants to engage with China on the canola issue. In the meantime, Carr said, Canada had been trying to increase canola sales in other markets such as Malaysia, Pakistan, Bangladesh and the United Arab Emirates.

In his willingness to attack critics, Mr. Lu adopted language that has been used by a growing number of Chinese diplomats – including, most prominently, Wang Yi, Chinas state councillor and Minister of Foreign Affairs. Mr. Wang, in 2016, berated a Canadian journalist for a question he called full of prejudice against China and arrogance.

Also on Tuesday, Agriculture Minister Marie-Claude Bibeau said China has stepped up inspections of Canadian pork products on the grounds that it’s concerned about smuggling and African swine fever — an illness that can be devastating among pigs. That’s in addition to previously stated Chinese concerns about the labelling of Canadian pork.

Ambassador Lu has been a very undiplomatic diplomat, said Margaret McCuaig-Johnston, a senior fellow with the China Institute at the University of Alberta. Instead of trying to work with Canada to understand our position, he has bullied us and given us ultimatums. Of course none of that has worked.

“We are working with producers and industry to underscore the importance of heightened quality assurance efforts to ensure there are no trade disruptions due to administrative errors,” Bibeau said in a statement.

Lu was asked for his thoughts on the possibility of working with a Canadian government led by Conservative Leader Andrew Scheer, who recently promised to take a harder line with China if he wins Octobers federal election. The envoy said he would not comment on Canadas domestic matters and said his country is willing to build relations with all political parties.

The Trudeau government has come under pressure to follow the American lead and ban Huawei from supplying equipment for Canada’s next-generation 5G wireless networks. Pence raised the matter with Trudeau last week in front of reporters.

He argued letting Huawei participate would be against American security interests. Trudeau replied by reiterating that Canadian government would rely on evidence from its own security agencies before making a decision.

Mengs arrest has outraged Beijing and Chinese authorities have demanded her release. Since Mengs arrest, China has detained two Canadians on allegations of endangering the countrys national security, sentenced two Canadians to death for drug-related convictions and rejected important agricultural shipments.

Huawei has denied allegations that its digital communications equipment is a tool of Chinese state espionage. Lu echoed that position Tuesday.

Also on Tuesday, Agriculture Minister Marie-Claude Bibeau said China has stepped up inspections of Canadian pork products on the grounds that its concerned about smuggling and African swine fever — an illness that can be devastating among pigs. Thats in addition to previously stated Chinese concerns about the labelling of Canadian pork.

Lu was asked for his thoughts on the possibility of working with a Canadian government led by Conservative Leader Andrew Scheer, who recently promised to take a harder line with China if he wins October’s federal election. The envoy said he would not comment on Canada’s domestic matters and said his country is willing to build relations with all political parties.

The case of Meng, the telecom giant’s senior executive, will return to a Vancouver courtroom on Thursday. It has drawn interest from around the world.

A statement from Canada’s Justice Department said Tuesday that the purpose of the proceeding is to address additional applications in Meng’s extradition case and to set future court dates.

The new dates will not be for the actual extradition hearing, which has yet to be scheduled, and Meng is not expected to attend Thursday’s proceeding in person, the statement says.

The U.S. Department of Justice laid 13 criminal charges, including conspiracy, fraud and obstruction, against Huawei and Meng, who is the daughter of the company’s founder.